📅 2026 Update: Changes in Business Law and Practices

Since the original article was published, several important changes have occurred in U.S. business law that affect startups and small businesses. These updates involve new rules and guidelines that entrepreneurs should be aware of to run their businesses successfully. The earlier article continues further down the page, providing foundational knowledge on starting and managing an Internet business.

📜 FTC Subscription Rule Changes

In October 2024, the FTC introduced amendments to the Negative Option Rule. This aimed to simplify subscription cancellations. However, in July 2025, the Eighth Circuit Court vacated this rule.

By February 2026, the FTC formally withdrew it, meaning businesses are not required to make cancellations as easy as sign-ups anymore.

⚖️ HSR Premerger Notification Updates

The FTC's 2024 changes to the Hart-Scott-Rodino (HSR) premerger notification form were struck down by a federal court in early 2026. Businesses must now return to previous filing requirements. However, as of February 17, 2026, the minimum reportable transaction value has increased to $133.9 million.

🌐 Digital Trade Law Framework

A significant international agreement on digital trade was finalized in late 2024. This new framework impacts e-commerce regulations across borders. Businesses involved in international trade must stay informed about these changes to navigate compliance effectively.

💳 Understanding Debit Card Fees

The Durbin Amendment caps debit card interchange fees for large banks. These fees range between 22 to 24 cents per transaction, depending on the purchase amount. Understanding these fees can help businesses manage their payment processing costs effectively.

📊 Sales Tax Nexus Thresholds

Online sellers must collect sales tax once their annual revenue exceeds $100,000 in most states. This requirement means businesses need to track their sales carefully to ensure compliance with state tax laws.

📌 Key Updates to Remember

  • 📜 The FTC subscription rule was vacated and withdrawn.
  • ⚖️ HSR filing requirements returned to previous standards with updated thresholds.
  • 🌐 A new digital trade agreement affects international e-commerce.
  • 💳 Debit card fees are capped for large banks.
  • 📊 Sales tax collection is required after hitting $100,000 in annual sales.

💡 Tips for Starting and Running Your Business

Review the details of your unique situation with your attorney.

📝 Business Formation Steps

To start an e-commerce business, file the necessary formation documents with your state's Secretary of State office. This includes Articles of Incorporation for a corporation or Articles of Organization for an LLC.

📄 Obtaining an EIN

You must obtain an Employer Identification Number (EIN) from the IRS. Complete Form SS-4, which can be submitted online, by mail, or by fax. Online applications are processed immediately, while others may take up to four weeks.

🏷️ Sales Tax Permits

Register for a sales tax permit in any state where you have tax obligations. This usually involves filling out an application on the state’s Department of Revenue website.

🛡️ Chargeback Management

Merchants typically have 7 to 14 days to respond to chargebacks. Developing a clear return policy can help manage and reduce potential chargebacks.

🔍 Privacy Policies

E-commerce businesses must maintain a public privacy policy. This policy should clearly explain data collection, usage, and sharing practices to build customer trust.

🏆 Ranked by User Reviews (2026)

This section reviews services that assist with business formation and legal needs, relevant to individuals starting or running an online business. The order follows Trustpilot data from October 2026, and ratings can change over time. It's important to note that star ratings may reflect more negative experiences, as unhappy customers often leave reviews.

🥇 1. Rocket Lawyer

Rocket Lawyer has been rated 4.5 on Trustpilot. It is known for its online legal document creation and offering affordable legal services. Some users find the subscription model costly if they need services infrequently, which may not suit all business owners.

🥈 2. LegalShield

LegalShield holds a Trustpilot score of 4.4. It is recognized for its legal subscription services that provide access to a network of law firms. However, some users report difficulties in reaching their assigned attorneys directly, which can be a drawback for those needing immediate assistance.

🥉 3. LegalZoom

LegalZoom has an impressive Trustpilot score of 4.6. It is well-known for its business formation services and legal document preparation. However, some reviewers mention delays in processing times, which could affect businesses needing quick service.

4️⃣ Bizee

Bizee has received a 4.8 rating on Trustpilot. It is recognized for its business formation and compliance services, along with registered agent services. Some users have noted limited customer support availability, which might impact those requiring frequent assistance.

🆓 Free Government and Nonprofit Resources

Many free resources are available for small businesses. The IRS offers assistance for obtaining an EIN and understanding tax obligations. State revenue departments often provide guidance on sales tax collection and remittance requirements.

SCORE is a nonprofit that offers free mentoring and resources for small business owners.

🔎 What to Compare When Choosing Services

  • 📃 Types of legal documents offered.
  • 💬 Customer service availability and support.
  • ⏳ Processing times for necessary filings.
  • 💰 Costs involved with subscriptions or services.
  • 📈 User ratings and reviews for insights.

❓ Frequently Asked Questions

📌 What is the FTC's latest position on subscription services?

The FTC's subscription rule was vacated in July 2025 and formally withdrawn in February 2026, meaning businesses are not required to simplify cancellation processes.

💼 How can I obtain a sales tax permit?

To obtain a sales tax permit, you must register in any state where you have a tax obligation. This typically involves completing an application on the state's Department of Revenue website.

🏦 When do I need to collect sales tax for my online business?

You must collect sales tax once your annual revenue exceeds $100,000 in most states. This requirement is crucial for compliance with state tax laws.

⚖️ What are the consequences of not filing HSR notifications?

Failing to comply with HSR filing requirements can result in substantial penalties. It's important for businesses to adhere to these regulations during significant mergers or acquisitions.

🔒 How do I manage chargeback fees?

Chargeback fees can range from $20 to $100 depending on the payment processor. Implementing clear return policies and robust fraud prevention measures can help manage these fees.

📜 What should be included in a privacy policy?

A privacy policy should clearly outline data collection, usage, and sharing practices. This transparency is essential for building trust with customers.

⚖️ Recent Court Cases

Several recent court rulings have impacted business law, particularly concerning subscription services and merger notifications. These cases reflect the evolving landscape of regulations that businesses must navigate.

For more recent rulings, browse more rulings on the news page.

End of October 2026 Update





Due to the current advances in technology, one of the largest drivers and contributors to the economy consists of internet business. Internet businesses can essentially take any particular form, though by definition, an online business is one that offers some sort of service with the help of the internet. Online businesses, can therefore, be just about anything, from one that conducts sales of products, goods, and merchandise, to those that offer specific services such as advertising and travel agencies. 

Many internet businesses will often simply deal their establishment strictly through the use of the internet, but due to the inherent convenience of the internet, other businesses that are considered as "conventional" or "regular" will also now conduct business through the internet.

Online businesses first came into being during the 1990s when there was a boom of internet businesses forming and offering their services through the internet. Many of these companies would be known as "dot-com companies," due to their websites having the ".com" in their addresses. Many of these internet business ventures would grow to have great success, though there would be quite a drawback in the late 1990s and 2000s, as many would eventually fail or go bankrupt. 

History of an Internet Business

However, in current day, an internet business can prove to be of great success, particularly when a properly researched and structured business plan is applied.  An online business has proven time and again that with the proper plan sales for a business will greatly improve, allowing for internet businesses to thrive.